To the Editor:
For many years now, the Rhode Island economy has lagged behind much of the nation’s and the high cost of doing business here scares many companies away from locating here.
The current corporate tax rate for Rhode Island is 9 percent. My proposal would be to offer a tax rate of 6 percent to those businesses that tie executive pay to average worker’s pay. Any company where CEO pay/compensation doesn’t exceed 20 times the average worker’s pay would qualify for the lower tax rate. If the company is unionized, the union leadership would not be allowed to receive more than 2.5 times what the average worker makes. If those conditions are met, then the company receives the lower corporate tax rate.
This would provide incentive for companies located in this state to share the wealth with their workforce. It would attract more of the talented workers to this state. Innovative, new companies would locate their operations here to take advantage of the reduced corporate taxes. Workers would have more disposable income to purchase items in local stores.
I truly believe this just could be a win-win situation for the businesses and workers of this state and I hope our elected officials would give serious consideration to this idea.